My take is that Kroger is most likely to make a big acquisition outside the grocery business unless it can get a major grocer that would expand its geographic reach. The most logical acquisition for Kroger outside the grocery business would be Rite Aid. Even if it does not make an acquisition, Kroger is still a great value investment because of its profits.

The writing is on the wall: today’s value shoppers want healthy, quality foods that are convenient but sold at the lowest price possible. Those trends seem to benefit Kroger, Whole Foods, Trader Joe’s, and Costco Wholesale. A potential loser here is Walmart (NYSE: WMT), which has a reputation for low quality and lousy customer service.

Basically, any company that offers high-quality merchandise or a high level of convenience at a good price is poised to profit in this economy. People want to save as much money as possible, but they don’t want to think of themselves as “poor”; income inequality, which makes people conscious of poverty, drives this trend.